Thane Court Upholds ₹1,120 Per Sq Metre Compensation For Palghar Farmers In Mumbai-Vadodara Expressway Land Acquisition

Thane, August 7, 2026: The Thane District and Additional Sessions Court, presided over by Judge P.V. Ghule, has dismissed an appeal filed by the Thane Project Implementation Unit of the National Highways Authority of India (NHAI) against the enhanced compensation awarded to farmers whose land was acquired for the Mumbai-Vadodara Expressway project.

In its order, the court observed that the NHAI had failed to produce any evidence to rebut the genuineness of the sale deed dated September 14, 2014, which was relied upon by the Sole Arbitrator while determining the market value of the acquired land.

“There is no evidence given by the applicant NHAI to rebut the genuineness of the impugned Sale Deed dated September 14, 2014. Therefore, there is no illegality committed by the Sole Arbitrator,” the court held.

Court Cites Supreme Court Principles

Relying on Supreme Court precedents, the court reiterated that an arbitral award can be interfered with only if it suffers from patent illegality or is contrary to public policy.

It observed that the Sole Arbitrator had considered all relevant documents while arriving at a fair market value and that NHAI had failed to produce any material to discredit the sale transaction relied upon for determining compensation.

Finding no error in the arbitral award, it dismissed NHAI’s application and upheld the enhanced compensation of Rs 1,120 per sq. metre.

Land Acquisition Dispute

Seven villagers, most of whom are farmers, were the respondents in the matter. The dispute pertained to 650 square metres of land acquired from Gat No. 56/1 at Bhatane village in Palghar district for the expressway project.

The Competent Authority for Land Acquisition (CALA) had initially awarded compensation at the rate of Rs 765 per sq. metre in August 2018. However, in February 2025, the Sole Arbitrator enhanced the compensation to Rs 1,120 per sq. metre, increasing it by Rs 355 per sq. metre.

NHAI’s Appeal Rejected

In its appeal, NHAI contended that the enhancement was contrary to the provisions of the National Highways Act and the Arbitration and Conciliation Act, 1996. It sought to have the arbitral award set aside and the matter remanded for fresh consideration.

The landowners opposed the plea, arguing that the Sole Arbitrator had considered the highest-value sale transactions from the relevant period preceding the acquisition notification and had correctly determined the market value by averaging the top three sale instances.

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They also submitted that the scope of judicial review under Section 34 of the Arbitration and Conciliation Act is limited and does not permit courts to reappreciate evidence.

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